Amazon is coming under investigation for its recent acquisition of the robotics company iRobot. The U.S. Department of Justice has opened an antitrust probe into the acquisition, citing concerns that the deal could lead to Amazon gaining “unfair competitive advantages” over rivals in the robotics market.
The DOJ has requested information from Amazon about its plans for the iRobot business, including the company’s current strategy for developing and distributing robots. In particular, the DOJ wants to know about Amazon’s plans for using robots in the home, and its plans for using iRobot’s technologies in its e-commerce business.
Amazon announced its purchase of iRobot in December 2019 for $250 million, a move that sparked outcry from industry experts concerned with Amazon’s outsize size and power in the market. Amazon already holds significant market share in the robot industry, with its Echo Dot and Alexa devices dominating the home robotics technology space.
The potential of Amazon gaining a monopoly over robotic technologies is a major concern for both robots and consumers. With Amazon controlling the development, distribution, and sales of these technologies, many fear that the company will be able limit innovation and competition in the market, leading to higher prices and fewer options for consumers.
The DOJ’s investigation into Amazon’s purchase of iRobot is likely to take several months to complete, and Amazon is expected to cooperate fully with the DOJ’s requests for documents and other materials. Until the investigation is complete, Amazon’s plans for iRobot and its robotics technology remain uncertain.
Hey Subscribe to our newsletter for more articles like this directly to your email.